Standard Chartered's wholesale loans in Singapore and Hong Kong shrank

But mortgage loans were up 25% and 13% respectively.

According to Barclays, loan growth in Asia (ex Korea) in 2H12 was predominantly driven by the consumer business, especially in Singapore and Hong Kong mortgages (up 25% and 13% h/h respectively).

Here's more from Barclays:

Wholesale loans in Singapore and Hong Kong shrank, which we believe was due to competition in the trade finance space.

With both the HKMA and the MAS introducing further property measures to cool housing prices (e.g. raising stamp duties, lowering LTVs, floor on risk weight), we believe mortgage growth will slow.

Margins broadly stable but with slight downward pressure: While group margin was stable, margins trended lower across Asia in 2H12. The recent shift in loan mix towards mortgages contributed to the margin decline.

Moreover, abundant liquidity conditions in Hong Kong, especially since 4Q12 after QE3, led strong loan pricing competition and a rise in surplus funds (LDR falling to 53% in 2H from 55% in 1H).

In Singapore, there was pressure on both asset yields and funding costs as system liquidity tightened (system LDR at 96%, highest level since 1999). Management guides for margins to remain stable going forward.

Winning market share in Hong Kong offshore RMB: While offshore RMB deposit growth was sluggish in Hong Kong (+2%), Standard Chartered grew its CNH deposit base by 46% y/y, increasing its market share to 11%.

Moreover, Standard Chartered was able to deploy funding into trade assets, with CNH loan to deposit ratio ~80%. CNH income rose by 30% y/y.

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